Respectees,
Recently, the High Court of Punjab and Haryana ordered an interim stay on Split of Minimum wages for EPF contributions. We have heared from the EPF enforcing authority was that the reason behind the stay was, as per the EPF Act HRA wages or exclusive for EPF contribution, whereas in the state of Punjab HRA is also one of the component constitutes minimum wages (i.e) Basic + DA + HRA.
I am posting this query with learning interest, is it the real reason for interim stay of split in minimum wages for EPF contribciution???
To my limited knowledge, there is no specific amendment in the EPF contribution on the "basic" wages". Specifically the definition of "basic" wages as remains same as in the Parent enactment. In such a situtation, most of the companies they are having their own wage policy and the basic wages ranges from 35~60% on Gross wages. The EPF contributions were also made on the Basic wages (35~60%).
Whereas, after 58 years of its enactment, some of the enforcing authorities of EPF giving different interpretation stating that, Basic wages include all allowance excluding HRA wages. Minimum wages cannot be split for EPF reasons and so on. Is these interpretations are correct in the eyes of law??? Is it so, why it was unnoticed for the last 58 years???????
Let me know, what is the legal stand on this issue??? I am looking forward reply from legal experts and senior members.